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Company makes final call of 25c per share on 500 000 shares issued at $1. Holders of 20 000 shares fail to pay the call and directors forfeit these shares. Assume: 1. Shares were subsequently cancelled. 2. Shares were reissued for a payment of $1 per share Required: Prepare the general journal entries to reflect these events.

Company makes final call of 25c per share on 500 000 shares issued at $1. Holders of 20 000 shares fail to pay the call and directors forfeit these shares. Assume: 1. Shares were subsequently cancelled. 2. Shares were reissued for a payment of $1 per share Required: Prepare the general journal entries to reflect these events.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lecture Example 1. Forfeiture of Ordinary Shares Company makes final call of 25c per share on 500 000 shares issued at $1. Holders of 20 000 shares fail to pay the call and directors forfeit these shares. Assume: 1. Shares were subsequently cancelled. 2. Shares were reissued for a payment of $1 per share Required: Prepare the general journal entries to reflect these events. 1. GENERAL JOURNAL Description Description Debit 2. GENERAL JOURNAL Debit Credit Credit
Transcribed Image Text:Lecture Example 1. Forfeiture of Ordinary Shares Company makes final call of 25c per share on 500 000 shares issued at $1. Holders of 20 000 shares fail to pay the call and directors forfeit these shares. Assume: 1. Shares were subsequently cancelled. 2. Shares were reissued for a payment of $1 per share Required: Prepare the general journal entries to reflect these events. 1. GENERAL JOURNAL Description Description Debit 2. GENERAL JOURNAL Debit Credit Credit
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